Rental Yield in India by City: Gross vs Net, With Worked Examples
Residential rental yield in India's big cities runs at roughly 3% to 4.6% gross on ANAROCK's 2026 figures, with Bengaluru highest at 4.6% and Delhi lowest at 3.2%. Listing-based trackers print higher numbers, around 5% to 5.8% in some cities. After maintenance, vacancy, property tax and income tax, most landlords keep 1.5% to 3% of the price.
Key takeaways
- ANAROCK's study of 2019 to Q2 2026 puts gross yields at 4.6% in Bengaluru, 4.3% in Mumbai and Gurugram, 3.9% in Noida, 3.6% in Hyderabad and 3.2% in Delhi.
- Global Property Guide, which works from listings, puts the national average at 5.16% (Q2 2026). The two methods measure different stock, so don't mix their numbers.
- Gross yield is annual rent divided by price. Net yield subtracts vacancy, maintenance you pay, property tax, repairs and, if you want the real figure, income tax.
- A worked Whitefield example falls from 2.6% gross to about 1.9% net and about 1.4% after tax at the 30% slab.
- Dubai apartments average around 7% gross, roughly double most Indian cities, before its own service charges.
Gross yield and net yield: the two numbers you'll see
Gross yield is the headline figure: a year's rent divided by the price, times 100. A flat bought for Rs 1 crore that lets for Rs 30,000 a month earns Rs 3.6 lakh a year, a 3.6% gross yield. Every published city figure you'll read is a gross yield.
Net yield is what lands in your account. From the rent, take off the months the flat sits empty, society maintenance if you pay it, property tax, repairs, insurance and any brokerage. Divide what's left by the full cost of buying, including stamp duty and registration, not just the agreement value. The calculator sites and yield guides we checked agree on the formula but not on the gap: estimates range from 1 to 1.5 percentage points below gross to 1.5 to 2.5 points in the metros. The gap depends mostly on who pays maintenance and how long the flat stays empty.
Income tax is a third layer. Rent is taxed as house property income after a flat 30% deduction, so a landlord at the 30% slab gives up roughly a fifth of the rent. Our post on tax on rental income goes through the calculation.
Rental yield by city: what the published sources say
Two kinds of source dominate. ANAROCK tracks average prices and rents in benchmark localities of the big housing markets. Global Property Guide and similar trackers divide asking rents by asking prices on listings, which tilts towards smaller, older and cheaper flats, and that pushes yields up. The table keeps them apart.
| City | ANAROCK, Q2 2026 (2019 figure) | Listing-based trackers, 2026 |
|---|---|---|
| Bengaluru | 4.6% (3.6%) | About 4.5% to 5.5% |
| Mumbai (MMR) | 4.3% (3.5%) | About 3% to 3.5% |
| Gurugram | 4.3% (3.5%) | Not separately reported |
| Noida | 3.9% (3.2%) | Not separately reported |
| Hyderabad | 3.6% (2.6%) | About 4.5% to 5.5% |
| Delhi | 3.2% (2.2%) | About 5.8% |
| Pune | Up about 65 basis points since 2019 | About 5% |
| Chennai | Smaller gains than the leaders | About 5% |
| Kolkata | Smaller gains than the leaders | About 5.8% |
Look at Mumbai and Delhi. On ANAROCK's numbers Mumbai beats Delhi by more than a point; on listing data Delhi beats Mumbai by more than two. Neither is wrong. They are measuring different flats. Use one source consistently when you compare cities, and check any city figure against a real listing in the locality you're considering.
Locality matters more than city
City averages hide wide spreads. Square Yards, a portal, shows Whitefield in Bengaluru at a 2.95% yield, while developer and broker pages quote 3.8% to 4.5% for the same suburb. Powai in Mumbai is shown at 3% to 3.52% on portal data. Newer, cheaper suburbs near job hubs usually yield more than prime addresses, because rents in a city vary less than prices do.
Worked example 1: a 2BHK in Whitefield, Bengaluru
Square Yards lists Whitefield's average asking price at Rs 14,650 per sq ft (July 2026). A rent-tracking site built on tenant reports, bengaluru.rent, puts the median 2BHK rent at Rs 35,000 a month, from a spread of Rs 10,000 to Rs 62,000. Take a 1,100 sq ft 2BHK at that average. The costs below are our assumptions for illustration, not market data; the Rs 4 per sq ft maintenance sits inside the Rs 3 to Rs 8 per sq ft a month that yield guides quote.
- Price: 1,100 × Rs 14,650 = Rs 1,61,15,000.
- Rent: Rs 35,000 × 12 = Rs 4,20,000. Gross yield: 4,20,000 ÷ 1,61,15,000 = 2.61%.
- Costs: one empty month Rs 35,000; maintenance at Rs 4 per sq ft a month, Rs 52,800 a year if the rent includes it; property tax Rs 10,000; repairs Rs 15,000. Total Rs 1,12,800.
- Net before tax: Rs 4,20,000 − Rs 1,12,800 = Rs 3,07,200, or 1.91%.
- Income tax at 30%: rent received Rs 3,85,000, less Rs 10,000 property tax, is Rs 3,75,000. After the 30% deduction, Rs 2,62,500 is taxable, and tax is Rs 78,750 before cess. Net after tax: Rs 2,28,450, or 1.42%.
Buying costs make it worse, because stamp duty and registration add several per cent to what you paid. Our stamp duty and registration guide has the state rates.
Worked example 2: a 2BHK in Hinjewadi Phase 1, Pune
99acres puts Hinjewadi Phase 1 flats at Rs 8,750 to Rs 12,600 per sq ft, averaging Rs 9,900 (asking prices). 2BHK listings in the area run from about Rs 22,000 to Rs 38,000 a month. Take a 1,000 sq ft flat at Rs 99 lakh let for Rs 30,000, near the middle of that range.
- Rent: Rs 3,60,000 a year. Gross yield: 3,60,000 ÷ 99,00,000 = 3.64%.
- Same cost assumptions scaled to the flat: one empty month Rs 30,000; maintenance Rs 48,000; property tax Rs 10,000; repairs Rs 15,000. Total Rs 1,03,000.
- Net before tax: Rs 2,57,000, or 2.6%.
The Pune flat costs about 61% of the Bengaluru one and earns about 86% of its rent. That is the pattern across India: cheaper suburbs near employment carry higher yields.
How Indian yields compare with the alternatives
A gross yield of 3% to 4% sits below what a bank deposit pays. SBI's fixed deposits for the general public top out at about 6.45% in September 2026, and deposit interest is taxed in full, with no 30% deduction. Property makes up the gap only through rent growth and capital appreciation. ANAROCK's point in its 2026 study was that both rose together: Hyderabad prices went from Rs 4,195 to Rs 8,090 per sq ft between 2019 and Q2 2026, while its yield rose a full point.
Dubai is the comparison most Indian investors make. Apartments there average around 7% gross (REIDIN put it at 7.08% in April 2026), and 6.5% to 8% is widely treated as a good result. Service charges then take 1.5 to 2.5 points off; our Dubai rental yield by area guide works that out community by community, and the Dubai versus India comparison covers tax and currency.
Commercial property is the other route to a higher yield in India, usually quoted at 6% to 9% gross, with longer vacancies when a tenant leaves. See our sibling posts on commercial versus residential and high-street versus mall shops.
Where yield figures mislead
- Asking prices overstate cost, asking rents overstate income. Both are listings, not deals. A flat that rents at 10% below the asking rent loses a tenth of its yield.
- Area bases differ. A price per sq ft on carpet area and a rent quoted for super built-up area give a yield that looks wrong in either direction. Check which one each figure uses.
- New launches don't earn rent yet. On an under-construction flat, the yield is zero until handover, while you may already be paying a loan.
- Yield ignores the loan. At a 3% gross yield, rent covers only a fraction of an EMI on a normal loan. Our rent versus buy analysis shows the full cash flow.
Who should buy for yield in India, and who shouldn't
Residential yield suits you if you buy mostly with your own money, expect to hold for ten years or more, and value rent as income that rises with the city. It suits you less if you need the rent to cover a large EMI, or you're choosing between a flat and a deposit purely on income. In that case, the deposit wins most years.
Frequently asked questions
Which Indian city has the highest rental yield?
It depends on the source. ANAROCK's Q2 2026 data puts Bengaluru highest at 4.6% among the big housing markets, ahead of Mumbai and Gurugram at 4.3%. Listing-based trackers put Delhi and Kolkata near 5.8%. Within any city, suburbs near large employers usually yield more than prime areas, so compare localities, not just city names.
What is a good rental yield for a flat in India?
For a residential flat in a big city, 3.5% to 4.5% gross is a reasonable result in 2026, and anything above 5% deserves a second look at the rent assumption. Net of vacancy, maintenance and property tax, 2.5% to 3% is good. Most of the return has to come from rent growth and price appreciation.
How do I calculate net rental yield?
Start with twelve months of rent. Subtract the months you expect it to stand empty, any maintenance you pay, property tax, repairs, insurance and brokerage. Divide what is left by the full purchase cost, including stamp duty, registration and interiors. For the true figure, also subtract the income tax you pay on the rent.
Is rental yield better in India or Dubai?
Dubai apartments average around 7% gross against roughly 3% to 4.6% in India's big cities, so on income alone Dubai pays about twice as much. Dubai's service charges are higher and take 1.5 to 2.5 points off, and currency risk applies to an Indian investor. Compare net yields and price growth, not headline yields.
Why do different reports give different yields for the same city?
They measure different flats. Consultancy data such as ANAROCK's uses average prices and rents in benchmark localities. Listing-based trackers divide asking rents by asking prices, often on smaller and older units, which yield more. Pick one source for comparisons and test it against real listings.
If you are weighing a flat for rental income, we can check the rent, the costs and the net yield against a real listing with you. Talk to the Realty Hunting team whenever you're ready.
